BSP: Hike in property rates noted in areas outside NCR

CEBU, Philippines —  Prices of residential units outside the national capital region, including Cebu, have increased in the first quarter of 2020, amid the pandemic.

According to Bangko Sentral Ng Pilipinas (BSP), growth in prices was recorded in all types of housing units in AONCR (areas Outside NCR) albeit at a slower pace in townhouses and condominium units.

Residential property prices grew at 8.5 percent, a bit slower than the 18.3 percent price growth recorded in NCR in the first four months this year.

The brisker growth of property prices in NCR can be attributed to the higher increase in the prices of condominium units, which outweighed the decline in prices of single detached/attached houses, duplexes and townhouses.

Meanwhile, growth in prices was recorded in all types of housing units in AONCR albeit at a slower pace in townhouses and condominium units.

Specifically, prices of condominium units rose by 23.6 percent, followed by those of single detached/attached houses and townhouses, which grew by 7 percent and 5.5 percent, respectively.

Duplexes, which account for only 0.3 percent of the total number of new housing units reported, registered a price growth of 38.3 percent.

In Q1 2020, the purchase of new housing units accounted for 74.4 percent of residential real estate loans (RRELs).

More than half of residential property loans were used for the acquisition of condominium units (53.8 percent), followed by single detached/attached houses (38.2 percent), and townhouses (7.6 percent).

Most of the RRELs granted in NCR were for the purchase of condominium units, while RRELs granted in AONCR were for the purchase of single detached houses.

By region, NCR accounted for roughly half (49.4 percent) of the total number of RRELs granted in Q1 2020, followed by AONCR?CALABARZON (24.7 percent), Central Luzon (7.7 percent), Central Visayas (6.1 percent), Western Visayas (3.3 percent), Davao Region (2.9 percent) and Northern Mindanao (2.2 percent). NCR and these six other regions combined accounted for 96.3 percent of total housing loans granted by banks.

Earlier, Cebu-based real estate licensed broker Joan Restauro said that residential products are now the hottest investment commodities among moneyed Filipinos.

Restauro explained that among other investment instruments, real estate has a sure-deal profit overtime, regardless of market situation.

“In our industry we have special role under pandemic. We are bent to adjust, to adopt, to correct the mistakes if any, but its failing forward. Pandemic is global. New standards are demanded based on needs to protect. But we are driven by human needs to find shelter and home and fullfillment of dreams therefore we are there to serve.”

Meanwhile, Angelyn P. Racaza, assistant vice president for Filinvest Land Inc., assistant vice president and area group head for VisMin, said Filipinos are buying condominium properties now both condominium and lot only packages.

Marketing through online, using different usual media platforms, and virtual meetings, Racaza said there are also buyers who are taking advantage of big promotions and discount under the pandemic seasons, particularly those units that are ready for occupancy.